The release of fourth-quarter business results provides a more comprehensive view of the credit quality of Vietnam’s banking system after a year of accelerated credit growth exceeding 19%. Encouragingly, the level of non-performing loans was better controlled last year compared with the 2023–2024 period, thereby helping to minimize risks and strengthen the resilience of the system. In the context of significant credit expansion, non-performing loans (NPLs) have become a critical factor in assessing the quality of banking sector growth. Data from financial statements for the fourth quarter of 2025 showed that the overall level of NPLs was better controlled compared with the previous year, with a marked slowdown in new bad debts. This development has eased the pressure of provisioning requirements, reflecting how banks have tightened risk management and strengthened credit quality controls even as credit growth accelerated. Following this general trend, the NPL ratio at many banks was notably more stable than in 2023–2024. Out of 27 listed banks, 18 reported unchanged or improved NPL levels compared with the preceding year. As a result, the pressure from non-performing loans was no longer as intense as in the previous period. Alongside credit expansion, the loan loss reserve (LLR) buffer was […]